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Guess Which Precious Metal Is Controlled By The Russians
Submitted by Tim Staermose of Sovereign Man blog,
Palladium is like the Rodney Dangerfield of precious metals. It never gets any respect.
If you ask someone about precious metals, in fact, just about everyone has heard of gold and silver. And occasionally platinum.
But palladium is one of those obscure precious metals that few people think about, or even know about.
Aside from actually having its own currency code (XPD), palladium is widely used in a variety of industrial applications, from spark plugs to catalytic converters to hydrocarbon ‘cracking’ to electronic components.
And here’s something most people don’t know: most of the world’s palladium is mined in Russia.
Since October 2013, Palladium prices have had a moderate boost—about a 5.3% increase in five months.
But given what’s happening in Russia, prices could soar. In fact, with trade sanctions looming, palladium could be taken off the world market indefinitely.
As the following chart shows, palladium has just broken out to a new 52-week high and is showing strong upward momentum.
Moreover, if you look at the 5-year chart, it could be about to break out to even longer-term highs.
I would consider buying palladium today, with a stop-loss order to protect your capital, at $759. That means if the market should prove this thesis wrong, the loss would be limited to just 4%.
I think the near-term upside target is the 5-year high of $855. That’s about an 8% gain from where we are today.
An upside of 8% versus a downside of 4% makes palladium a good risk/reward trade, given that the odds of the higher-price outcome are much better than the odds of the lower-price outcome.
But if tensions between the West and Russia escalate and trade sanctions stay in place for a prolonged period, $855 could be a very conservative upside target for palladium.
The last time Russia withheld palladium supplies from world markets back in 2000, the price rose 151% from a low of $433 in January 2000 to over $1,090 an ounce by January 2001.
In a scenario like that, palladium would be an incredibly profitable trade.
One easy way to take a position in palladium is via the ETFS Physical Palladium Shares (PALL on the New York Stock Exchange).
A new physical palladium ETF sponsored by Standard Bank has also just launched in South Africa.
And Absa Bank, which already sponsors the world’s largest platinum-backed ETF, has also announced it will launch a palladium ETF called NewPalladium. It will list on the Johannesburg Stock Exchange on March 27th.
These new palladium ETF launches, coming at a time of tightening supply due to Russian sanctions, could easily add more upward momentum to palladium prices, as they will withdraw supply from the market to physically back their shares.
However, if you want to avoid the possibility of any counterparty risk, there’s no substitute for owning the physical metal yourself.
The Royal Canadian Mint has in the past minted palladium versions of its very popular and instantly recognizable Maple Leaf bullion coins.
You can also buy 1 troy ounce palladium bars from most major dealers.
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I'll stick with gold, silver, brass, and lead thank you very much.
It is the launch of these ETF that will hinder a rise - a tool of banker manipulation!
The Russians have a lot of nerve controlling a precious metal. Time for NATO to send them some depleted uranium.
Palladium is an interesting metal. It is impervious to all gases except hydrogen, so it could be used in certain kinds of electric cars now being looked into (fuel cells). In can also hold 900 times its volume of hydrogen.
It is unique, yet not that expensive. A little hard to find though (hint: think Canadian Pd Maples). But, highly recommeded as a small diversification/investment if you can get some.
Disclosure; The Central Bank of DoChenRollingBearing has a small amount of reserves of Pd.
The real super metal is.....Rhodium, DCRB!
I am going to acquire an ounce of it and see what it looks like.
no, the super metal is bonestars mellon, you can wack that bucket with a 2x6 and all it does is make a ping sound.
Check this one out, but I cannot find any vendors:
(wickedopedia):
https://en.wikipedia.org/wiki/Ruthenium
But, if we could hibernate, we could wake up in 200 years when H Beam Piper discovers Collapsium!
Ruthenium and Rhenium ("near platinum metals") will find use in newer airplane engine turbine blades (using them as parts of the alloys so they can run hotter). If you can buy and wait (perhaps a long time), you might do well.
Given the future cost of fuel & benefits of war I think they'd be in missiles or drones more than passenger/freight craft.
I read that sci-fi series - fun reading.
Well, this entirely explains the huge delivery notice bump in palladium.
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsMTDReport.pdf
This is about 54% of the total registered stock of palladium.
It has the unique gift of overcoming Vander Waal's forces intersticially when absorbing hydrogen, which is why it is used in cold fusion experiements. This property also allows for hydrogen storage since the molecule can be "packed" within the metal matrix itself and not just on the surface. Finally, this is why it is a good hydrogenation catalyst, although typically less selective than the softer platinum type.
And it's a pretty cool metal.
DCRB, what metals are mined in Peru?
You might have some buying opportunities you are not aware of!! Like going to the mine itself.
Been trying to go to Peru´s only real gold refinery, but they don´t accept fringe bloggers as visitors.
I will soon finish my series of metals mining in Peru at my blog. Gold was done a couple of days ago. Today, I have finished copper, and will do the rest as long as my wife lets me finish...
EDIT:
Done!
"Gold and Other Metals Production in Peru" is first, then "Mines and Metals in Peru":
http://tinyurl.com/mk2fyt3
http://tinyurl.com/n3fxsf8
Is it? If it's overloaded with carbon-monoxide will it stop working as a catalyst? That's what I read.
http://rspa.royalsocietypublishing.org/content/176/967/474
the chance that it will trigger the stop loss before profit is about 2/1
if you want to gamble, at least give yourself a good chance.
Russia will return this loan in kind in the form of concentrated plutonium with supplementary deiterium and tritium.
Time for Vlad and the ChiCom Leader to go on TV holding a pallet of USTs and hold them hostage.
"The BB game is starting, Reggie, hurry!"
"Awright---What???? What is happening to the signal??"
"Good evening, Bath House. We have seized your ESPN feed. Look closely at this pallet (close-up camera zooms in)."
Bath House: "*Gulp!*"
"That's right. Vlad and I are holding these Treasuries hostage! These are our demands......."
Russia's well stocked up on uranium, depleted & enriched, so they can return the favour very quickly.
I'll stick with gold, silver, brass, and lead thank you very much.
That's the spirit. Don't investigate other alternative investments and always remember to keep a closed mind.
I invest in people. And you're my new buddy.
Okay good! And yes, people, friends and associates are the best investments.
One good example of this that I'm shocked more ZH'ers don't pick up on, given our proclivity for consumption of this fine substance:
Liquor!
Think about wheat and corn prices, and food/beverage price inflation more generally. Think about how long it lasts. Think about what it could get you in a SHTF scenario. Consider how aging can actually increase the value of the product in some circumstances. If you aren't stockpiling liquor, you are missing out on a seriously great opportunity. Consider especially shooters/fifths from a divisibility perspective.
Your post made me laugh. We were at a friend's house for dinner and he was bemoaning the fact he had nothing for retirement saved up and was facing he was going to work until he dropped in his "damn" vineyard. At least we had a steady income and had invested in 40IKs.My husband and I( after cleaning off our projectile wine hurl off his walls) told him he was far richer than we could ever hope to be. He has 56 barrels of exquisite Syrah, Petite Syrah and Cab. 50 acres dry farmed with 20 sheep just to keep the weeds down. A fantastic industrial well. Chickens and a veggie garden. Great neighbors like us that have always had his back no matter what came down ( we had helped him save his house and life during a wild fire).
It's funny how some perceive wealth. He viewed us as wealthy when we consider ourselves wage slaves. His friendship is worth more to me then any of our professional collegues. They certainly would be no help in a SHTF scenario.
Miffed;-)
I've brewed mead in the past. New 50gal wine barrels run about $500/bbl.
Wish I could brew enough mead to fill up a 50gal bbl.
you are all talk...
why don,t you trade lives.
25 + year old scotch is a good way to go.
bourbon, vodka, etc., have had their mention along with tobacco.
Not frequently but your point is valid. I usually add morphine to the mix for suggestions since it has no real expiry date, unlike conventional antibiotics & is much more useful than just plain aspirin, for consumption/injury or barter.
Silver itself is an antibiotic so under money/useful it's covered. Just make sure you have the means (batteries, clean water) to make colloidal silver for infusing silver into bandages.
an "open" mind to invest in things that go to zero will bankrupt a person, like bitcoin.
Not smart.
The markets are heavily rigged so that which is intangible should be shunned 99% of the time.
ALL Ukrainian military posts, stations and outposts in Crimea are now fully under Russian control. It is just under a couple of hundred military facilities. The last one has just been handed over to Russia peacefully.
All Ukrainians soldiers in Crimea are under Russian control and will be kicked out within 48 hours... After that, Putin can move on to the main prize... Current NATO estimates is that Russia can take Kiev within 10 hours of war breaking out.
I would wager that is what the troops and tanks massing on the border are for.
I don't see any designs on the Baltic States, but reclaiming the Ukraine, yes.
Russian control over the entirety of Ukraine in the short therm is central to Putin & Friends' goal of increased hegemony in Eastern (and by extension, Western) Europe.
Less than a century ago Russia lost over 20 Million soldiers and civilian Men, Women, and Children repelling invaders from Germany so it is understandable that they are sensitive about their Western border and the EU Brussels Bandits.
If you want to speak of hegemony in Europe in the past 100 years point the finger at Germany.
http://en.wikipedia.org/wiki/World_War_II_casualties_of_the_Soviet_Union
I wouldn't count out Russia to not attempt new annexations. They have set a well-defended southern perimeter from Georgia to the Dardenelles and can now move northward and westward behind this screen. No one noticed the Georgian incursion when it happened.
http://en.wikipedia.org/wiki/2008_Georgia%E2%80%93Russia_crisis
It's been very quiet since.
While the Chessmaster is plotting his next move, Obammy is out on the golf course. Could seem to care less. As if he either doesn't understand, or doesn't care. It's madness.
"Help, Reggie! This sandtrap is made of quicksand! Get Help! I'm going down the wrong way!"
While the Chessmaster is plotting his next move, Obammy is out on the golf course. Could seem to care less. As if he either doesn't understand, or doesn't care. It's madness.
So exactly what should he do? What would make you happy?
Fire a damn nuke at the rooskies!
Get on that one way trip to Mars.
The intellectual bankruptcy of most posters here is clearly on display when a very simple question is junked...
There is a lot of truth in that statement.
I mean, it's almost like Obama and Putin are on the same side, or something.
"I will have more flexibility after the election." -- Barack Hussein Obama
Now take a moment and think before you answer...
Ready...
Do any of you really think Obama has any real say in the foreign policy decsions of this country?
Sure he drops the last signature, but only after the course was charted by others and he shook his head "yes".
I lov epicking on Obammy as much as the next guy, but he's not calling the shots any more than Bush Jr was. GWB just BELIEVED so much it masked the fact that the ideas were spoon fed to him as well.
Puppet rulers all since Kennedy...
Did Shrub Jr. really believe? I'd say his comical grin & tripping over his words were his lack of poker-face at so obviously not being in charge, absolutely flabbergasted anyone else could believe he was calling the shots because he sure as hell knew he wasn't.
Good point. Never gave him credit for possibly playing the fool as opposed to just being one...
Someone's gonna miss those Panzer divisions ...
Give the E.P.A. ten more years and Palladium will be at $20K per ounce.
Good for cold fusion research also, but only if you have physical.
I received some of those new blue 100's at the bank Friday and several were stuck together. Is that the cold fusion you're talking about? :)
<It certainly brings new meaning to the term "greenback".>
You might be thinking of zero-point energy. But if you you got more money out of the bank than you put in, that is essentially the hope of cold fusion. (Aside from violating the FIRST RULE of banking: you always put more money in the bank than you take out. [second rule: put your money in the bank and _maybe_ they'll let you visit it sometime.]) /Hey BTW, prosecuting war criminals sounds cool.
I thought that was nickel?
Only used palladium onc on an industria scale. The driving force was that it is cheaper than platinum.
Palladium is to platinum as silver is to gold.
It makes for better bling than platinum, silver, or white gold - shinier finish and no tarnishing.
Palladium is used in white gold, something I have been looking into (bring Pd down here for sale in Peru, they don´t produce any here).
I would partly disagree. Pd is used as a catalyst when it can be substituted for Pt in vehicle engines. Last I read though, only Pt can be used in diesel engines in that role, but active research is underway to find a way to use more Pd, as it is about half the price of Pt.
China uses some Pd in jewelry. I just stack a little.
Here are some basic facts about the platinum group metals:
http://tinyurl.com/b5xuvmo
Norilsk bitchez
It would be nice if the russians would put in a silver short squeeze once in a while....... you know .....
Rare earth metals...
http://thediplomat.com/2013/01/the-new-prize-china-and-indias-rare-earth...
Couple of the stans also.
http://www.edgekz.com/kazakhstan-poised-for-rare-earth-boom.html
http://newswatch.nationalgeographic.com/2013/08/20/race-for-rare-earths-...
...
Think electronics.
You can easily set up a parallel resource backed monetary system between rare earth metal application manufacturing in China driving energy consumption being supplied by the Russians. Rest of the world is by and large locked out of the market except through reclaimation and recycling unless other sources are found. How they price the trade Rubles or some new paper strictly used for gas pricing backed in palladium to price index against instead of using oil traded for Yuan backed in gold or whatever is in material when you own the majority of rare earth metal producing lands and surrounding regions are in your sphere of influence.
Some more color on this.
from the diplomat article.
The name, rare earth metal, is a misnomer. The metals are, in fact, far more abundant than many precious minerals. Yet their dispersion means they are rarely found in economically viable quantities. The similarity of chemical properties of the 17 REMs, demonstrated by their close proximity on the periodic table, makes them very difficult to separate. Their extraction is capital- and skill- intensive. End uses for REMs are varied but recent figures cited by the U.S. Geological Survey noted that in the U.S. the end use was predominantly for battery alloys, ceramics and magnets, sectors that are continuing to grow to cater for high-tech industry. The extent to which REM’s are used in defense technology is such that without their production modern warfare—fighter jets, drones, and most computer-controlled equipment—would have to undertake a lengthy process of redevelopment. A sovereign monopoly of such a resource is therefore a serious concern for any nation.
Amplfiy that by a self sufficient and sustaining cluster of sovereign entities. Who has who by the balls and things have to change to reduce dependency without self sufficiency in all areas from small scale then iterate upwards larger in scale. That is the real problem that keeps being perpetrated on people on a mass scale in all aspects of their lives then iterate it upwards to local communities, regions, etc.
"they are rarely found in economically viable quantities... Their extraction is capital- and skill- intensive.... A sovereign monopoly of such a resource is therefore a serious concern for any nation."
Thus Australia's recent re-development of their production--and Japan's multi-billion dollar investment in those projects.
Australia´s Lynas and America´s Molycorp are mining rare earths right now. And losing lots of money.
Because they do not have the valuable "heavy rare earths" (europium, dysprosium, terbium, etc.). For the moment (and at least for a while), only China has the "heavies" in volume.
Palladium was trading at a higher price than Gold back in 2000. Then it soared to 300% over Gold Price?
If history were to repeat then $900 Pd is cheap....very cheap. I am glad that I have a little bit. I may want to increase my speculative exposure.
Ignoring March 2009 when Gold traded at 4X Palladium's price, yeah. History just repeats selectively, I hope.
IMHO, the past is very easy to predict.
Palladium trades like a bipolar off his meds, for two reasons: one, it is a substitute for platinum in auto catalytics (so its price is correlated to platinum's), and two, because the Russians control a giant above-ground pile of the stuff, so they can fuck with the price when it suits them. With threat of the Russian hoard off the market, one might expect palladium prices to start gyrating.
A more fundamental factor would be Chinese demand. Once Chinese start to require catalytic converters on their automobiles, the prices of both platinum and palladium should rise dramatically.
If they were gonna demand it, they'd have demanded it by now.
I don't think they will. They ought to for health reasons but that's not up to us.
It is like any other PM, buy the real thing if you want it. The paper market has zero to do with supply and demand in the short term. The bankers will bury themselves trying to prove that for as long as they can. They don't care if they lose every ounce at $10 or $10000. If they don't already have it all, they want to short. And lets face it. They didn't see any of this coming.
Palladium bitchez!.....Hmmmm.... It just doesn't roll off the tongue like gold bitchez!
Doc you just need a catchy pharse like "ALL the other Metals PALE next to PALLADIUM"
you know kind of like Tippe Canoe and Tyler Too. Hmm Darrin from Bewitched would be the man for catchy jingles...
https://www.youtube.com/watch?v=oOOFdNWPP04
"Buy momo, don't be a homo"
- Janet
https://www.youtube.com/watch?v=olhIxIJPAa4
here is how good jingles are created Bewitched style though I much rather prefer the original Darrin
+1 for original Darrin.
Several African countries have trade agreements re palladium with China already in place. Gosh its almost as if someone planned something for more than twenty minutes ahead!
/cue Twilight Zone theme song
Hu couldanode
Which is why any sentient person owns SWC.....
My Ballerinas and frontiermen are quivering in the vault, I just checked.
I also checked SWC and PALL, they are both tumbling right now, in the wrong direction....
Smackdown time by TPTB???
or, BTATSH?*
*buy the all time sanction high?
And that is why the paper price will most likely drop.
Guess which nuke-tech and space-tech Eurasian country also mines huge amount of the world's Platinum and Titanium? Yup, Russia.
And then there are the rare-earth minerals in Mongolia. If China and Russia clamp down on those supplies, or even price them through the roof -- cartel-style -- it's "tits up" for Silicon Valley.
it's all about carbon nanotubes... stupid dick waving bullshit like this will just push things forward, faster
there's digging stuff out of the ground and there's turning it into something useful, two very different things
KIRK2NC.... "Guess which nuke-tech and space-tech Eurasian country also mines huge amount of the world's Platinum and Titanium? Yup, Russia.
....even funnier is how we purchased all of the Titanium used in our Submarines from Russia during and after the cold war through a front company in South Africa.
back in the day, I did very well with Platinum, but bear in mind the overall BIG DIFFERENCE with Gold and Silver – neither palladium or platinum have a millennial history of being MONEY!
True, but in the mid-1800s Russia used platinum to make 3 ruble and 6 ruble coins for some 15 (?) years. These are rare and hard to get here in America (and very expensive, I saw a 6 ruble coin once at eBay offered at $19,000), maybe now that Russia is getting wealthy, they are bringing their treasures home.
Palladium and Platinum should rise together since they are largely interchangable as catalysts.
Except in diesel engines, very popular in Europe and China. Active research IS ongoing to see how much (and how) Pd can be used vs. the more expensive Pt.
But that may not be a real rise, merely a correlation, if their function is displaced by room-temperature catalyzing by nano-gold on titanium dioxide. Plus if carbon-monoxide poisons, disables, the white metals' catalysts but not gold (so it seems) that puts them to a further disadvantage.
Time to finally rid ourselves of catalytic converters.
What a relief, then we can be rid of these silly lung-things too.
Got Palladium?
Russia: Suck my tailpipe.
O'bomber: Gladly!
It's possible that palladium is not entirely necessary for cold fusion (at least if Rossi's claims for nickel are to be believed--of course there is something undisclosed in Rossi's formulation, and that might well be palladium).
Of course, Rossi may also be just an amazingly long-surviving con man.
All your palladiums are belong to us.
I hold a small position in unobtainium.
funny , i was sure this article was going to be about plutonium 239. ya know...nukes!
Guess why palladium crashed last time? Because Russia pretended there was a shortage then dumped tons of it on the market.
Don't get fooled again. Gold & silver are money. Palladium & platinum have currency codes but central banks aren't using them as assets & barter won't be using them because they're too expensive and visually too hard to differentiate to silver coins to most people who may be quite untrusting. Gold is obviously not like the others but again is expensive so large purchases only, when paper prices simply can not exist for anything.
As for paper trades on this - you are on your own - no thanks.
just bought my first ballerina!